What's Happening?
A recent report highlights that 65% of consumers are actively seeking deals and promotions on convenience-store prepared foods more frequently than a year ago, driven by rising prices. This data, presented
by Donna Hood Crecca from Technomic, indicates a shift in consumer behavior as they navigate increased costs. The report also outlines the challenges faced by convenience-store foodservice operators, with 77% citing tariffs as a major concern, followed by rising costs of foodservice items and packaging. Despite these challenges, 45% of operators anticipate growth in foodservice sales over the next six months, although this is a decrease from previous expectations.
Why It's Important?
The increased consumer focus on deals and promotions in convenience stores reflects broader economic pressures, such as inflation and tariffs, impacting consumer spending power. This trend is significant for the convenience-store industry, which must adapt to changing consumer preferences and economic conditions. Operators are responding by enhancing the quality of their offerings, with 44.3% of consumers rating c-store food and beverage quality as very good. The demand for healthier options is also rising, with 45% of consumers expecting c-stores to provide healthy foodservice items, indicating a shift towards health-conscious consumption.
What's Next?
Convenience stores may continue to innovate and diversify their offerings to meet consumer demands for both value and quality. The focus on limited-time offers (LTOs) presents a growth opportunity, as 53% of consumers prioritize LTO availability when choosing where to dine. As economic pressures persist, c-stores might further emphasize promotions and healthy options to attract and retain customers, particularly among younger demographics and those with higher incomes.
Beyond the Headlines
The evolving consumer preferences towards healthier and value-oriented options in convenience stores could lead to long-term shifts in the industry. This trend may encourage c-stores to invest in sustainable and health-focused product lines, potentially influencing broader foodservice and retail strategies. The emphasis on quality and health could also drive competition among c-stores and other foodservice providers, leading to innovations in product offerings and marketing strategies.
